Disclosure pledge vital to fee proposal

Every time a real estate deal is completed in Licking County, a conveyance fee is charged. Currently, the fee is set at $2 for every $1,000 of valuation, resulting in $200 in revenue for every $100,000 worth of real estate sold.

In 2012, the county conveyance fee raised $927,000, according to County Auditor Mike Smith's office. That's a significant sum.

There currently are proposals to raise the fee to generate additional revenue. County Commissioner Doug Smith has expressed support for using some portion of fees to help pay for desperately needed bridge and road repairs.

The leader of Grow Licking County - the countywide Community Investment Corp. charged with the mission of generating business and investment across the county - also has set eyes on a conveyance fee increase to fund its mission. Commissioner Smith has stated support for this use, too.

Grow Licking County was launched in 2012 and is funded by a mix of contributions from businesses, government entities and public agencies. The CIC has three-year funding commitments from those parties as it works to foster local job and industrial growth.

On its face, the notion of using public monies to fund private growth initiatives is potentially worrisome. Earlier this year, JobsOhio - a newly created body - was given control of hundreds of millions of dollars that once found its way into state coffers. JobsOhio was set up as a public-private entity but structured in such a way as to obscure transparency and accountability. Its secretive structure drew criticism and pushes for restructuring and public disclosure.

We are pleased the CIC has chosen to comply with public records laws up front, despite its current use of some private donations to fund operations. Dan Evers, economic development director for Grow Licking County, recently told The Advocate, "We have, since our inception, complied with open record laws. We have no intention of varying from that and not the least reason for contemplating it."

Cheri Hottinger, vice chairwoman of the CIC and president of the Newark Area Chamber of Commerce, concurred that, "The CIC is a public/private partnership, and because we have public money, that opens us to the Sunshine Law. Everything is open."

Legally, the county conveyance fee can go as high as $4 for every $1,000 of valuation. The ultimate decision as to whether the fee increases rests in the hands of the commissioners. Two required public hearings have been conducted by commissioners regarding the proposed fee increase, as well as another proposed hike of the permissive license tax to further help fund road and bridge repair.

During the first of the public hearings on the matter, most residents who spoke out were resistant to increased taxes. The second, and last, public hearing drew a more balanced mix of opposition and support.

If commissioners do approve the use of conveyance fee funds, in addition to the current pledge from CIC leadership for funding and spending transparency, the county auditor also has pledged he would ask the State Auditor's Office to include Grow Licking County in the county's annual audit.

The county auditor also has suggested commissioners place a cap on the amount of fee earnings they plan to earmark for the CIC, so a particularly robust collection year doesn't result in revenue for the agency exceeding the stated need.

Some people might question the reasoning or justification of using real estate derived fees for projects and improvements not clearly related to real estate: It remains to be seen whether the CIC's request will be granted by commissioners.

We are pleased, however, by the CIC and county officials' pledge for continued transparency and, if the auditor's advice is taken, enhanced accountability.

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Disclosure pledge vital to fee proposal

Every time a real estate deal is completed in Licking County, a conveyance fee is charged. Currently, the fee is set at $2 for every $1,000 of valuation, resulting in $200 in revenue for every $100,